By authority of sections 3307.04 and 3307.60 of the
Revised Code, the following rule shall apply to the plans of payment provided
in sections 3307.58, 3307.59 and 3307.60 of the Revised Code:
(A) The provisions for reselection of a
plan of payment set forth in this paragraph shall be applicable to all service
retirants granted retirement effective on or after October 1, 1989, or a
retirant who elects recalculation of benefits pursuant to section three of Am.
H.B. 293 of the 118th General Assembly, or a retirant whose application is made
on or after September 15, 1989 for retirement effective July 1, 1989 or
thereafter, and who meet the requirements set forth in section 3307.60 of the
Revised Code.
(1) Application for a
change of plan of payment must be submitted to the retirement system on a form
approved by the retirement board. Payment under a reselected plan of payment
shall be effective as follows:
(a) Death of a beneficiary first of the month following
death of beneficiary regardless of when the application is received, provided
such beneficiary was designated at the time of retirement. The reselection of a
plan of payment shall be limited to the single lifetime benefit equivalent
option, as stipulated in paragraph (A)(2) of this rule or as specified in
division (A)(4) of section 3307.60 of the Revised Code if a joint and survivor
plan of payment with multiple primary beneficiaries was elected.
(b) Divorce, annulment or marriage dissolution the later
of the first of the month following date application is received by the
retirement system or the first of the month after the divorce, annulment or
marriage dissolution, provided:
(i) The spouse was
designated as beneficiary under the plan of payment selected at retirement;
and
(ii) A spousal consent
form approved by the retirement system or court order specifically authorizing
the reselection of plan of payment on the basis of the marriage termination is
received by the retirement system; and
(iii) The reselection of
a plan of payment shall be limited to the single lifetime benefit equivalent
option, as stipulated in paragraph (A)(2) of this rule or as specified in
division (A)(4) of section 3307.60 of the Revised Code if a joint and survivor
plan of payment with multiple primary beneficiaries was elected.
(c) Marriage or remarriage the later of either the first
of the month following the date a completed application on a form approved by
the retirement system is received by the retirement system or the first of the
month after the marriage or remarriage, except if the marriage or remarriage
occurs on or after June 6, 2005, the election must be made not later than one
year after the date of the marriage or remarriage. The spouse must be selected
as beneficiary under division (A)(1), (A)(2), (A)(3), (A)(4) or (A)(6) of
section 3307.60 of the Revised Code and the benefit must be calculated as
stipulated in paragraph (A)(3) of this rule.
(d) For those retirants whose benefit is commenced under a single
lifetime benefit in accordance with section 401(a)(9) of the Internal Revenue
Code and the regulations thereunder, not later than one year after the date
that the benefit described in this paragraph commences, a retirant who was
married on the effective date of the benefit may elect a plan of payment under
division (A)(1), (A)(2), (A)(3), or (A)(6) of section 3307.60 of the Revised
Code and calculated as stipulated in paragraph (A)(3) of this rule provided the
spouse is named as the beneficiary. The election shall be made on a form
approved by the retirement system and shall be effective on the effective date
of the benefit paid under a single life annuity. Any benefit overpayment may be
recovered as provided in section 3307.47 of the Revised Code.
(2) The single lifetime
benefit equivalent to which a retirant who elected a plan of payment under
division (A)(3) of section 3307.60 of the Revised Code or a plan of payment
consisting of both a lump sum payment under division (B)(1) of section 3307.60
of the Revised Code and a benefit payable to a beneficiary under division
(A)(3) of section 3307.60 of the Revised Code may elect to return shall be the
gross benefit that the retirant would currently be receiving had the retirant
selected a single lifetime benefit at retirement less any reductions, if
applicable, for a lump-sum payment made under division (B)(1) of section
3307.60 of the Revised Code.
(3) Optional plans of
payment shall be based on the single lifetime benefit less any reductions, if
applicable, for a lump-sum payment made under division (B)(1) of section
3307.60 of the Revised Code actuarially reduced based on the ages in effect as
of the effective benefit date when each beneficiary is added as a joint
survivor and the option factors in effect on the effective date of retirement.
All previously granted cost of living adjustments and ad hoc increases shall
also be reduced by such option factor.
(B) Pursuant to division (H)(1) of
section 3307.60 of the Revised Code, a retirant married on the effective date
of service retirement effective on or after October 1, 1989, a retirant married
at the time of an election for recalculation of benefits pursuant to section
three of Amended House Bill No. 293 of the 118th General Assembly, or a
retirant who applies on or after September 15, 1989 for retirement effective
July 1, 1989 or thereafter who is married at the time of such application,
shall be deemed to have elected the plan of payment under option 3 as provided
under division (A)(3) of section 3307.60 of the Revised Code with half of the
retirant's benefit continuing for the lifetime of the spouse,
unless:
(1) The applicant elects
a plan of payment which provides more than fifty per cent of the benefit
payable during the lifetime of the retirant will continue after the
retirant's death to the spouse.
(2) The spouse consents
on a form approved by the retirement system to the retirant's election of
a single life annuity or payment pursuant to an optional plan under which,
after the death of the retirant, the spouse will receive less than fifty per
cent of the benefit payable during the lifetime of the retirant.
(3) The retirement board
waives the deemed election of option 3 after receipt of one of the
following:
(a) If the retirement system receives the written statement of a
physician certifying that the spouse is medically incapable of acknowledging
the plan of payment elected by the applicant, and receives consent by and
through a duly appointed guardian, as specified by rule 3307-7-01 of the
Administrative Code, or
(b) If the affidavits of the applicant and at least two other
persons, one of whom must be unrelated to the applicant, are received by the
retirement system attesting that the whereabouts of the spouse is
unknown.
(C) Spousal consent to a member's
plan of payment shall not be required if:
(1) The member is
required to elect a plan of payment pursuant to a court order issued under
section 3105.171 or 3105.65 of the Revised Code or the laws of another state
regarding the division of marital property and the member designates the
member's current spouse to receive a survivor annuity of at least fifty
per cent or the remaining available survivor benefits, if less, under that
plan, or
(2) The amount specified
pursuant to a court order or orders under section 3105.171 or 3105.65 of the
Revised Code or the laws of another state regarding the division of marital
property is the maximum amount payable to a joint and survivor beneficiary or
beneficiaries.
(3) The retirement system
is required to commence a benefit in accordance with section 401(a)(9) of the
Internal Revenue Code and the regulations thereunder.
(D) A member's current spouse must
consent to the election of a plan of payment described in division (A)(4) of
section 3307.60 of the Revised Code if either of the following
apply:
(1) The member selects a
plan of payment described in division (A)(4) of section 3307.60 of the Revised
Code, but the member is not subject to a court order issued under section
3105.171 or 3105.65 of the Revised Code or the laws of another state regarding
the division of marital property that requires the member to make such
election;
(2) The member is ordered
to designate a former spouse as beneficiary of a specified portion of the
benefit, but also designates a beneficiary or beneficiaries other than the
member's current spouse under that plan of payment.
(E) A member may elect a plan of payment
pursuant to division (A)(6) of section 3307.60 of the Revised Code that is
equivalent to a single lifetime benefit in a lesser amount, payable for life,
with the following provisions:
(1) The plan of payment
shall include:
(a) Continuing monthly benefits of either one hundred per cent or
fifty per cent of the benefit payable during the lifetime of the retirant are
paid after the retirant's death to a sole primary beneficiary named at
retirement; and
(b) Continuing benefits for any months remaining in a certain
period that begins on the effective date of retirement and continues for a
specific number of years chosen at retirement to a secondary beneficiary or
beneficiaries; where
(i) The certain period may be a minimum number of years;
or
(ii) The certain period is an extended number of years elected by
the member with an additional reduction in the benefit amount as determined by
the actuary employed by the retirement board.
(2) Monthly benefits shall not be paid to
joint secondary beneficiaries, but joint secondary beneficiaries may receive a
lump-sum amount equal to the present value of the benefits remaining in the
certain period.
(3) If all beneficiaries die before the
expiration of the certain period, the present value of the benefits remaining
in the certain period may be paid to the estate of the beneficiary last
receiving benefits.
(4) The present value of the benefits
remaining in the certain period shall be calculated at the assumed rate of
return in effect at the time of payment.
